With the 30 September 2018 deadline fast approaching those affected by the Requirement to Correct rules who are already under HMRC enquiry face continued uncertainty about the extent of their risk to future penalties.

Under Requirement to Correct (RTC) taxpayers with undeclared offshore income and gains have until midnight on 30 September to either make a full disclosure, or register under the Worldwide disclosure facility and then make a full and accurate disclosure by 29 December to avoid severe penalties for failure to correct (FTC).

For those individuals who are still unsure whether they need to make a correction, HMRC will, by concession, allow them to supply the relevant information (by 30 September), without accepting that there are unpaid liabilities, to protect against future FTC penalties.

No precise calculations are required, simply an indication of values within 4 different ranges. Provided the information supplied is accurate, and the taxpayer continues to comply, the penalties for a FTC will not be due if it later transpires that additional tax is due as a result of the issue they have disclosed to HMRC.

However, this concession does not apply to those who are already under HMRC enquiry and who may not yet be in a position to establish whether corrections are going to be required. These taxpayers have until 29 November to provide the HMRC officer dealing with their case with an outline disclosure (having notified their intention to disclose by 30 September) if they wish to avoid FTC penalties.

This means that they now have just over two months to establish any and all potential corrections which might apply and disclose them accordingly. Given the difficulties in obtaining information on offshore matters for those with complex affairs, and the fact that HMRC enquiries are often ongoing for many years, this may prove an impossible task.


Requirement to Correct 

Making a tax disclosure: (Digital Disclosure Service)

Offshore income toolkit 


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